Investing
in real estate is about more than just finding a place to call
home. Investing in real estate has become increasingly popular
over the last 10 years and has become a common investment
vehicle. Although the real estate market has plenty of
opportunities for making big gains, buying and owning real
estate is a lot more complicated than investing in stocks and
bonds. But with help from a professional you can make it happen
with success.

If you're thinking about investing in a rental property, experts
say low home prices combined with low interest rates make this the
best time in years to become a real-estate investor.

What's more, the real-estate market is starting to recover: U.S.
houses lost $489 billion in value during the first 11 months of
2009, but that was significantly lower than the $3.6 trillion lost
during 2008, according to real-estate website Zillow.com.

"We haven't seen home prices this low in so many years, coupled
with the rates
being so low. When the money is cheap to borrow and the
houses are cheap to buy, it's absolutely the best time to invest."

While the timing may be right, these five tips can help
first-time investors take advantage of what might be the opportunity
of a lifetime.

Know your options. Since not all investment
properties are the same, it's important to determine what type of
property fits your strategy, says Harrison Merrill, chief executive
officer of Merrill Trust Group, a real-estate investment company
based in Atlanta. Do you want to become a landlord, or would you
rather restore and resell properties? Are you interested in
apartment buildings and other commercial real estate, or in buying
land that can be developed? First-time real-estate investors may
want to start with residential housing, since commercial real estate
and land development still face challenging market conditions,
Merrill says.

Partner with experience. First-time investors
should find a
real-estate agent experienced in investment property deals
who can help you locate promising properties. "Look for relational
brokers who expect to do business with you again and therefore are
going to be much more careful with what they recommend," Merrill
says. A second option is to collaborate with a more experienced
real-estate investor and close a deal together. In this economy, an
experienced real-estate investor may be willing to work with you in
exchange for the capital you can provide, giving you the opportunity
to glean investment knowledge and experience firsthand, Merrill
says.

Even if you don't collaborate with other real-estate investors,
talk to them about pitfalls they've experienced. "Go down to the
general district court in your area and listen to some
landlord/tenant cases so you can get a sense of what kind of
challenges landlords face," says Jeffrey Taylor, author of "The
Landlord's Kit."

Look for the right location. If you buy a
property with hopes of renting it out, location is key. Homes in
high-rent or highly populated areas are ideal; stay away from rural
areas where there are fewer people and a small pool of potential
renters,. Also, look for homes with multiple bedrooms and bathrooms
in neighborhoods that have a low crime rate. "Renters gravitate to a
safe neighborhood, and if they have kids, they will want a good
school district, Also think about potential selling points for your
property. If it's near public transportation, shopping malls or
other amenities, it will attract renters, as well as potential
buyers if you decide to sell later. The more you have to offer, the
more likely you are to please potential renters.